MND-N CONFERENCE HIGHLIGHTS ECONOMIC DEVELOPMENT ISSUES

UNCLAS BAGHDAD 002953 SIPDIS STATE FOR NEA/I/ECON E.O.12958: N/A TAGS: ECON EFIN EAID PGOV PREL IZ SUBJECT: MND-N CONFERENCE HIGHLIGHTS ECONOMIC DEVELOPMENT ISSUES ¶1. (U) SUMMARY: Provincial Reconstruction Team (PRT) representatives from Kirkuk, Ninewa, Diyala, Erbil, and Salah ad Din provinces, emboffs, and Multi-National Division-North (MND-N) discussed local economic development issues at the quarterly conference held on October 16-17 in Tikrit. Discussions focused on best practices on promoting economic development in the provinces. In particular, participants toured the "I-BIZ" business development incubator that helps Iraqi contractors improve their entrepreneurial skills. Similar conferences with other MNDs are under consideration. END SUMMARY. PRT ECONOMIC DEVELOPMENT PROJECTS ¶2. (U) MND-N hosted a conference on October 16-17 that included MND-N leadership, PRT representatives from Kirkuk, Ninewa, Diyala, Erbil, and Salah ad Din, and Embassy officers from the Office of Provincial Affairs (OPA) and ECON. PRTs shared best practices for promoting economic development in their respective provinces and sought greater guidance on their specific roles to promote U.S. trade and investment. PRT Kirkuk briefed on its assistance to a small entrepreneur in establishing a mobile dairy as well as the PRT's role in encouraging the formation of women's organizations. PRT Ninewa cited their province's biggest economic challenge as the government's inability to execute its budget. The PRT has focused on grassroots projects to bring Sunnis, Shias, and Kurds together. PRT Diyala planned to issue between 800-1000 micro-grants over the next 30 days to vendors affected by a recent market bombing to prevent loss of employment. PRT Erbil added that some economic successes in Kurdistan could serve as models for other provinces. PRT Salah ad Din reported that they will be co-locating their PRT ECON office with Military ECON offices to enhance coordination. They hope to place microcredit officers in their small business development centers to support farmers with juicing and canning projects. "I-BIZ" BUSINESS INCUBATOR AT CAMP SPEICHER ¶3. (U) Conference participants toured the "I-BIZ" business incubator on the outskirts of Camp Speicher that included approximately 20 Iraqi-owned small and medium businesses under U.S. military contracts. The "I-BIZ" is designed to enhance entrepreneurial skills. Participant businesses include cement, gravel, machine repair, and construction companies. An Iraqi "Souq" market for local artisans to sell their goods on the base has been established too. ¶4. (U) The most successful operation at I-BIZ was the Iraqi Skills Enhancement Center, where up to one hundred young, unemployed Iraqis train in carpentry, plumbing, HVAC maintenance, welding, and engine repair skills. Graduates receive certification from the U.S. Military and the Iraqi Ministry of Labor and Social Affairs in their trade after completion of a three-month course. KBR hires most graduates to replace more expensive third-country national laborers. Camp Speicher is also working with Al Warka Bank to open a branch near the contracting office and will soon require all suppliers participating in the I-BIZ program to accept electronic funds transfer instead of cash payments. ¶5. (U) Econoffs briefed on Iraq's basic macroeconomic and banking statistics, the Embassy's organizational structure, and economic goals identified by the Mission Strategic Plan (MSP) to DOD personnel and PRT contractors. The PRTs were particularly interested in how they can help further promote investment deals following the upcoming investment conference in DC. Emboffs also briefed on developments in the banking sector, the effect of Qbriefed on developments in the banking sector, the effect of security on economic activity, and how PRTs can help foster lending to businesses in their communities. ¶6. (U) COMMENT: Embassy OPA Director called the MND-N conference a best-practices example to encourage civilian-military cooperation at both the national and local levels. Our PRT and military colleagues gained a better understanding of the U.S. Mission's larger economic goals. In turn, they provided emboffs with briefings on economic development in their locations at the micro level. Emboffs also gained insight into the implementation of existing Quick Response Funds (QRF) projects in the field. END COMMENT. HILL